How to Get the Best Currency Exchange Rates While Traveling

Avoid airport kiosks and currency exchange desks at all costs, as they often charge markups of 10-15%. Instead, use a debit card from a bank that refunds ATM fees to withdraw local currency directly from bank-affiliated ATMs at your destination.

1. Choose the right bank account before you leave. Open an account with a bank that doesn't charge foreign transaction fees and ideally offers ATM fee reimbursements (like Charles Schwab or Fidelity in the U.S.). This saves you roughly 3% per transaction.
2. Master the ATM withdrawal process. Always choose 'Decline Conversion' if the ATM asks if you want the bank to perform the conversion for you. Let your home bank handle the exchange rate, which is almost always closer to the mid-market rate.
3. Use a 'no foreign transaction fee' credit card. Use a credit card for all point-of-sale purchases. Ensure your card has no foreign transaction fees. Always choose to pay in the local currency, never your home currency, if the card terminal gives you an option.
4. Use apps to track the mid-market rate. Download an app like XE Currency to see the real-time mid-market rate. If a local shop or merchant offers an exchange rate for your home currency, compare it against the app to see how much they are overcharging you.

Is it better to exchange money at my home bank before I travel?

Generally, no. Local banks often have poor exchange rates. It is almost always better to withdraw cash from an ATM once you land.

What if the ATM charges a fee?

If you have a fee-reimbursing bank account, it doesn't matter. If you don't, only withdraw large amounts once to minimize the impact of the flat-rate fee.

Why should I always choose 'local currency' at a card terminal?

Selecting your home currency allows the merchant's bank to set the exchange rate, which is known as Dynamic Currency Conversion (DCC). It is almost always a rip-off.